In a freshly published personal account, titled Ithaki, the former prime minister Tsipras pulls no punches as he reflects on that chaotic era during Greece's debt drama.
An Unconventional Appointment
According to Tsipras's recollections, he chose that unorthodox academic Varoufakis to be the treasury head primarily because of his global profile along with Varoufakis's “extremely attractive” abilities when it came to communicator.
“He was, in reality, more of a personality and less of an economist,” recalled the 51-year-old.
Clashing Priorities
The former leader claims how Varoufakis had a personal motives that involved promoting his books and experimenting with his own theories on Greece rather than truly fighting for the country's economic stability.
Tsipras wrote how those negotiations to avoid bankruptcy became “not just a method to secure a better deal for Greece. They became a test, an historic chance to prove the truth of Varoufakis's theories.”
High-Stakes Negotiations
During tense discussions, Greece found itself perilously on the brink of exiting the single currency area.
On the line lay both the country's future and those punishing austerity measures required in return for financial aid from foreign lenders.
Failed Options
Attempts to find funds elsewhere, such as an urgent appeal to Russia to buy Greek government bonds, were rejected.
Helping Greece was equivalent to tossing cash into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Referendum and U-Turn
That summer, the excoriating conditions were put to a popular referendum, an action which threw Europe into a deeper existential crisis.
Although the vote was won decisively by those against austerity, Tsipras was forced but to ignore the result then negotiate a rescue deal with foreign lenders that proved to be tougher.
Final Straw
The ex-PM revealed that he started questioning his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who appeared on the covers of publications the world over … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy involving establishing a parallel currency and issuing coupons to retirees, the leader knew it was the end and asked Varoufakis: “Can you be serious?”
Enduring Criticism
In the memoir, the author asserts how Varoufakis had proved himself to be “unsuitable for a deal that required complex and sensitive management.”
He also claimed how Varoufakis's confrontational approach made him more and more alone with colleagues, endangered the country, and helped hardliners who were advocating Grexit.
The account of events has been met with fury and stunned disbelief in some quarters, while Varoufakis has so far kept a conspicuous quiet regarding these claims.